Apple will begin manufacturing iPhones in India by the end of April.
Its factory in Bangalore, Karnataka, will be run by Wistron, and all of the devices it produces will be sold locally. Apple will be hoping that the move can bolster the iPhone’s presence in India, where it has somewhat struggled in the past due to its high price tag.
The move was confirmed to Bloomberg by Priyank Kharge, the state’s information technology minister, who met with Apple executive last month to negotiate a deal. Apple has reportedly secured a whole bunch of perks, including big tax breaks.
“Apple’s iPhones will be made in Bangalore and all devices will be targeted at the domestic market,” said Kharge. He added the state will help Apple if the company later decides to use other manufacturers in the region.
Apple has been in talks with the Indian government for several months now, and the company confirmed in late January that its most recent meeting was “constructive.” Days later, it was reported that the move was “almost a done deal.”
By manufacturing the iPhone in India, Apple can cut costs and reduce its price tag locally. This should help the company sell more units in one of the world’s fastest-growing smartphone markets, where 750 million handsets will be sold by 2020.
In 2016, Apple shipped 2.5 million iPhones into India. That was its best ever year there, but it only ranked 10th on the list of top smartphone vendors in the December quarter after grabbing just 2 percent of the market share.
For the vast majority of local consumers, Apple devices are just too expensive, making cheaper devices from the likes of Samsung much more popular.